NABC Chapter 79 Refusal of Authorization
Chapter 79 Refusal of Authorization
The last rays of the setting sun had not yet faded, but bright lights already shone from the office buildings in Zhonghua Industrial Park. In the conference room on the top floor, the long table was polished to a shine, and Chinese tea sets and Western coffee cups were placed side by side. A faint aroma of tea wafted in the air, but it could not conceal a tense atmosphere.
Lin Zhou sat in the main seat, his fingertips lightly tapping the table, his gaze calmly sweeping over the people sitting opposite him. Leading the group was George, the Asia-Pacific president of Peak Electronics from the United States, with blond hair and blue eyes, wearing a well-tailored bespoke suit, a reserved smile on his lips, but unable to hide the arrogance in his eyes.
Sitting next to him was Hansen, the representative of TÜV Rheinland, who was stern-faced and held a thick document in his hand, occasionally adjusting the gold-rimmed glasses on his nose.
Two other people were sitting in the corner, one from Sony Corporation and the other from British United Electronics, both well-known giants in their respective fields.
These people, who were marveling at the hot sales figures of Zhonghua handheld consoles in an electronics store in Causeway Bay yesterday, are now sitting in Zhonghua's conference room with only one goal—the patent licensing of the handheld consoles.
George broke the silence first, speaking in English with an American accent, his tone carrying a hint of condescension: "Mr. Lin, Peak Electronics is willing to offer five million US dollars to purchase the patent license for the core technology of your handheld console."
You should know that five million US dollars is enough for you to buy half a street of shops in Hong Kong. Moreover, our Peak Electronics sales network spans the globe; only by entrusting your handheld console to us can you truly go global.
Before he could finish speaking, Hansen followed up in a low, deliberate voice: "Rhine Electronics is willing to raise the price to 6.5 million. Our production line is more advanced, and our quality control is more stringent, allowing us to maximize the value of the handheld console. Mr. Lin, your factory is too small to support such a large market. Licensing the patent to us is the wisest choice."
The Sony representative, not to be outdone, bowed slightly and spoke with a hint of ingratiation: "Mr. Lin, Sony is willing to establish a long-term partnership with you. Patent licensing fees can be paid in installments, and we can also provide you with technical support. We have a high market share in Southeast Asia, and we are confident that we can help Zhonghua handheld console sales reach a new level."
The group chatted amongst themselves, their tone filled with confidence. In their eyes, Zhonghua was just an unknown small factory in Hong Kong, holding the core patents for handheld consoles. Like a poor boy with a golden rice bowl, he had no reason not to accept the olive branch extended by these giants.
Lin Zhou listened quietly, a faint smile on his face, but he didn't say a word. He recalled the scene six months ago when the air fryer patent was being licensed. At that time, he was new to the area and eager to open up the market, so he licensed the air fryer patent to several manufacturers. And the result? Orders were snapped up, and Zhonghua's air fryers went from hot sellers to sluggish sellers in just three months. Those manufacturers who obtained the licenses produced at lower costs and sold at lower prices, ultimately making a fortune, while Zhonghua only received a meager licensing fee and a cheap OEM fee.
That experience was like a thorn, deeply embedded in Lin Zhou's heart. From then on, he made up his mind that he would never again easily hand over core patents.
Seeing that Lin Zhou remained silent, George's smile faded slightly, and his tone became somewhat pressured: "Mr. Lin, you should know that without the channels of large companies like ours, your handheld console will forever be confined to the small town of Hong Kong. Moreover, our legal team is very professional. If you insist on not authorizing it, we will not rule out taking legal action to challenge the handheld console's patent."
The atmosphere in the conference room instantly plummeted upon hearing this. Hansen and the Sony representative crossed their arms, their eyes filled with a hint of anticipation. They were certain that Lin Zhou, a small factory owner, couldn't withstand such threats.
Lin Zhou finally raised his head, his gaze sharp as a knife, sweeping over George's arrogant face. He picked up the teacup on the table, took a sip of hot tea, and then slowly spoke, his voice not loud, but each word clear: "I appreciate everyone's kindness. However, the core patents of the handheld console will not be licensed."
"What?!" George jumped to his feet, staring at Lin Zhou in disbelief. "Mr. Lin, do you know what you're saying? Five million dollars, you're just going to say you don't want it?"
"Not just five million, but even fifty million or five hundred million, I wouldn't license it." Lin Zhou put down his teacup, leaned forward slightly, and spoke with an unwavering determination. "Six months ago, I licensed the patent for my air fryer, and what happened? My factory almost went bankrupt. I won't make that mistake again."
Before he could finish speaking, Hansen frowned: "Mr. Lin, these are two different things. Handheld game consoles are different from air fryers; their technological barriers are higher, and their market prospects are broader—"
"Precisely because the prospects are bright, I'm even less likely to let go." Lin Zhou interrupted him, his gaze sweeping over everyone present. "You're all here today because you think Zhonghua is weak and want to take advantage of us. But let me tell you, although Zhonghua is small, we have our own strengths. We've already completed the expansion of our handheld console production line, and our daily output can reach 20,000 units. We're building our own sales channels; we've already secured three distributors in Southeast Asia, and we'll be able to ship to you next month."
He paused, a mocking smile playing on his lips: "As for legal means? Go ahead and try. Zhonghua's patents are registered in over thirty countries worldwide, and each one is verifiable. I'd like to see how you'll raise your objections."
George's face turned pale and then red. He hadn't expected this seemingly young Hong Kong boss to be so tough. He wanted to say something more, but Lin Zhou raised his hand to interrupt him.
"Of course, I'm not completely denying you all a chance." Lin Zhou's tone softened slightly as he changed the subject. "Patent licensing is out of the question. But if you're willing, Zhonghua can offer you the qualification of an agent."
"An agent?" George was stunned, clearly not expecting Lin Zhou to make such a request.
"That's right." Lin Zhou nodded, his tone calm but carrying an unyielding force. "You use the Zhonghua brand to sell Zhonghua handheld consoles. We'll provide the goods, and you'll be responsible for sales. Profits will be split 70/30 between us. If you're willing to do it, we'll sign a contract; if not, the door's over there, goodbye."
A 70/30 split?
Upon hearing this, everyone present gasped. What kind of profit-sharing ratio was this? Usually, distributors take the lion's share, and manufacturers take a smaller portion. Lin Zhou was clearly making these giants work for him.
Hansen slammed his fist on the table and shouted angrily, "Mr. Lin, you are insulting us! Rhein Electronics will never be a distributor like this!"
"Then please go ahead." Lin Zhou remained expressionless, not even lifting his eyelids.
The Sony representative also looked grim. He hesitated for a moment, then said in a low voice, "Mr. Lin, can we discuss the revenue sharing ratio again? Sixty-four, we get four—"
"No discussion." Lin Zhou refused decisively. "Either you get 73% or you leave. Zhonghua's handheld consoles are easy to sell."
A deathly silence fell over the conference room. Looking into Lin Zhou's resolute eyes, George suddenly realized that this young man was not the pushover they had imagined. He held a powerful tool capable of shaking up the global electronics market, and he himself possessed the ambition and confidence to match it.
George remained silent for a long time before finally sitting down slowly, his tone tinged with resentment: "73 it is. Peak Electronics is willing to be Zhonghua's agent, but we want the exclusive agent in the United States."
"No problem!" Lin Zhou secretly breathed a sigh of relief.
Seeing that he had spoken, the others quickly relented. Although Hansen looked reluctant, he gritted his teeth and agreed. The representatives from Sony and United Electronics dared not object further. They knew that missing out on Zhonghua's handheld console meant missing out on a huge market. Even a 70/30 split was better than watching helplessly.
Lin Zhou watched them sign their names one by one, and a genuine smile finally appeared on his face. He stood up and extended his hand: "Pleasure doing business with you."
George grasped his hand, his tone complex: "Mr. Lin, you are the most assertive boss I've ever met."
Lin Zhou smiled but remained silent. He knew this was just the beginning. From this day forward, Zhonghua Machinery would truly step out of Hong Kong and into the world. And his industrial park would usher in a new era of glory.
The last rays of the setting sun outside the window had long since faded, and the factory lights illuminated the entire area. Workers on the night shift gradually returned to their posts, and the roar of the machines resumed, louder and more powerful than ever before.